The government is prepared to absorb higher fuel subsidy costs, which could reach RM45 billion a year amid surging global crude oil prices, rather than pass the burden on to consumers through higher petrol prices.

Prime Minister Anwar Ibrahim said the government would maintain RON95 petrol at RM1.99 per litre despite international crude oil prices rising to between US$120 (RM490) and US$130 (RM530) a barrel.

He said the move was intended to shield the public, particularly low- and middle-income households, from rising fuel costs and the resulting pressure on household budgets.

“If oil prices continue to surge, the cost borne by the government could reach between RM42 billion and RM45 billion a year. If we raise fuel prices in line with market rates, people would have to pay an additional RM2 or RM3, or at least RM5 a day.